37 Percent of Borrowers with 30-Year Fixed Mortgages Have Rates Above Six Percent

Last updated on January 9th, 2018

We all know mortgage rates have been flirting with records over the past year and change, but many have still not taken advantage, or can’t, according to a piece in the WSJ.

Despite the en vogue 30-year fixed floating around five percent, 37 percent of borrowers with the popular loan program have mortgage rates of six percent or higher, per Credit Suisse analysts.

The group of borrowers represents a collective $1.2 trillion in home loans, and billions in lost savings, whether by choice or necessity.

Apparently more than half could lower their rate by nearly three-quarters of a percentage point, and many could shave off a full point, assuming they qualified.

So why are refinance numbers so low? Is it the bad weather, stringent underwriting guidelines, or perhaps another reason?

Well, we found out last week that a staggering 11.3 million, or 24 percent, of all residential properties with a mortgage in the United States are underwater, meaning more is owed on the mortgage(s) than the property is worth.